SEC’s Custody & Manipulation Concerns Still Plague Bitcoin ETF

SEC’s Custody & Manipulation Concerns Still Plague Bitcoin ETF

August 21st, 2019   |   Finance Magnates

The US SEC has delayed its decision on several Bitcoin ETF applications yet again–are we any closer to an approval?

When Tyler and Cameron Winklevoss, the twin-brother founders of the Gemini cryptocurrency exchange, submitted an application for a Bitcoin-based ETF just over one year ago, the excitement was palpable.

In the days running up to the United States’ Securities and Exchange Commission’s (SEC) decision on the matter, the price of Bitcoin swole–BTC rallied from roughly $6300 in mid-July of 2018 to around $8200 by July 25th, where it stayed for several days before the SEC’s eventual decision to deny the application on July 27th.

A month later, the SEC denied 9 other Bitcoin ETF applications.

What ensued was a bear market that drove Bitcoin down to $3200 (its lowest price in over a year), in addition to an almost comically-long list of delays and denials from the SEC around Bitcoin ETF applications. A number of new companies, including Van Eck, SolidX, Bitwise Asset Management, and many others tried (and tried again, in some instances).